The access of credit by rice farmers in Doho Rice Scheme, Butaleja district

Abstract

Generally, in Uganda lack of finances is one of the critical problems hindering growth, production, productivity and generation of farm income. The extent to which agricultural credit has been of benefit to rice farmers as well as influences its access, have been of interest though not much study has been carried out on them. The study examined the access of agricultural credit. The study was conducted in Doho Rice Scheme, Butaleja district using a survey design. A systematic sampling technique was adopted in selecting 60 rice farmers who were examined. Structured questionnaires and document analysis were used to collect quantitative data from the sampled households. Descriptive statistics were used to analyze quantitative data. The study examined 52 rice farmers who have ever received agricultural credit and 8 who did not access credit. Results imply that agricultural credit access by the female farmers is still very limited. Generally, farmers’ association, collateral security especially land and land ownership were highly important in influencing access to agricultural credit. There is need for stakeholders to promote flexible credit facilities and increase awareness among farmers with less experience in agriculture so as to increase their access. In case of collateral security, farmers should be encouraged to form cooperative groups or farmer investment groups to enable them access credit from financial institutions.